Maybe it’s because of the same investor pool, but crypto seems to be really dependent on the market. Agree?
I don't think that crypto is fully independent of the stock market. Let me follow this discussion to see how other members think
I believe that there might a good relationship between crypto and the stock market. They are more intertwined than what you and I might expect. While cryptocurrencies were initially used as a hedge against traditional financial markets, recent trends have shown a significant correlation.
It doesnt seem very independent of it…. its probably cause people diversify so you could find an investor on both fields thus an interrelationship
Although I'm not very familiar with crypto, I have seen a few times that it gets affected by the occurrences happening in the stock market. According to this article, anything positive or negative that happens in the stock market has the potential of overflowing into the crypto market. As a result, crypto prices are affected, based on projections of future economic environment and stability of the financial market.
I see many members here are commenting that it's intertwined with the market. I'm new to crypto, can somebody explain to me in simple terms; how?
Yeah, it seems like there’s definitely some correlation. Even though crypto is supposed to be independent, the market trends often affect it. The same investor pool might be the reason for that connection. 🤔
with only 1/10 the size of SP500, crypto market can be easily manipulated by a few big players (aka whales). so i would say it is independent
It definitely gets affected by the stock market to an extent. They are interlinked in some way. In general everything does gets affected by the stock market so crypto is not really spared from it. We can see how market fluctuations does affect it
I don't fully agree.
Yes that was the attraction of crypto originally but you will see recently when US stocks dip because of a recession scare, so does crypto!
Perhaps it's because the financial institutions are in on the game too now...
Crypto might have started off as its own thing, but let’s be real, it’s getting more and more tied up with the stock market. Same investors, same moves. If the market sneezes, crypto catches a cold too.
Crypto and the stock market are kind of like cousins. They're related, but they can also do their own thing. Sometimes, they move together, especially when things get a bit crazy in the world.
